Suppose the ABC bank has excess reserves of $4,000 and outstanding checkable deposits of $80,000. If the reserve requirement is 25 percent, what is the size of the bank's actual reserves?
A. $16,000.
B. $84,000.
C. $24,000.
D. $20,000.
C. $24,000.
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The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is
A) the Federal Reserve System. B) the United States Treasury. C) the U.S. Gold Commission. D) the House of Representatives.
Assume that the M1 multiplier is 4. If the Federal Reserve purchases $200 worth of government securities, the money supply will
A) rise by $200. B) rise by $800. C) fall by $200. D) fall by $800.
The principal reason(s) that so much U.S. currency is held outside the U.S is (are) ________
A) many people around the world trust the U.S. dollar more than any other currency B) banks all around the world find it convenient to hold large amounts of U.S. dollars C) U.S. citizens and corporations spend a lot of dollars abroad D) all of the above E) none of the above
If a series of severe storms in the Atlantic Ocean drastically significantly disrupted the transatlantic slave trade, which would most accurately describe the market for indentured servants in colonial America?
a. The price and quantity of servants would increase. b. The price and quantity of servants would decrease. c. The price of servants would increase and the quantity of servants would decrease. d. The price of servants would decrease and the quantity of servants would increase.